There are many activities in managing insurance operations that are facilitated by data processing and computer assistance. Insurance is in fact an industry that relies on computer-managed operations, and a foundational implementation of actuarial calculations. In operation, insurance companies compete by enhancing two aspects of their business. First, insurance companies strive to offer low rates for the management of risks—such as insurance against the damage and injuries associated with the operation of automobiles and other vehicles, and insurance to cover damage caused to other property. Second, insurance companies strive to offer outstanding service to its customers if and when an accident occurs. This involves a prompt and accurate assessment of the damage, and a fair estimate of the repair bill. A corollary of this is that the assessment of damage should also discern if the policy covers the damage—either as a threshold issue or at some other junction in the process.
Efficient management of insurance policies is often a neglected aspect of insurance business management. For example, while pricing and monitoring insurance for car and driving risks get substantial interest, the actual implementation of services by insurance companies after an accident or other claim-triggering event gets less attention. Claim processing, if done effectively, can result in substantial savings to policyholders and better service; collectively, these changes can establish long-term customer loyalty. A botched or inefficient accident investigation, on the other hand, can result in a myriad of problems—some immediate, others delayed—but in any event, problem-prone claims processing that can destroy customer satisfaction.
It was with this understanding of the continuing problems in handling insurance operations that formed the impetus of the present invention.